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ULIPS are selling more in urban and semi urban areas

Created by : Nikhil , Senior Manager, Insurance  | 03 31 2010 11:47:54 +0000
Industry : InsuranceFunctional Area : Performance(Corporate Finance)
Keywords : ulips
Activity:  266 views;  last activity : 07 06 2010 20:18:09 +0000

Tier II, III towns' investors increasingly preferring ULIPs

  
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Nikhil, yes its true the ULIPS is getting more and more popular among the people. The main reasons being mode of investment, flexibility in altering the asset allocation and tax benefits which made it reach the people. And presently it is been bought by the urban and semi-urban people and soon we will see its penetration in the rural areas too.....

Thanks for initiating.......... :)    
By Niranjan Meena, Actuary Manager, LIC  04 05 2010 07:50:15 +0000
 
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The rural and semi-urban people, when purchase a Life Policy mainly try to get the primary coverage from the policy. They are attracted to insurance for its "coverage" aspect and for its simplicity. They, doubt the happenings in stock market and get nervous to the idea that " what goes up may go down also".

On the other hand, city/town investors want quick return and that too in his/her life time. They are ready to take risk for this. Thus ULIP suits them most. The exit route for ULIPs also acts as an advantage to them.

Some ethical thinking :-

However, sellers of Life Policies, may equally educate the city/town subscribers to the need of atleast one policy for long term to ensure "coverage" which may keep disaster away from his/her family in case of the policy holder's death. Primary need of an Insurance .. is-it-mot ?
By ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India  04 05 2010 14:15:29 +0000
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While preference for ULIPs has remained almost the same in the metros and Tier I cities over the past seven months, there has been a marked rise in investments in ULIPs in the smaller cities and towns," Boston Analytics said in its report on 'Indian Consumers' Savings and Investment Behavior' for February 2010.

"There has been a jump in the confidence level of the consumers of Tier II and III cities in the stock market to a significant level and it has resulted in a rise in investment in ULIPs by these consumers," Boston Analytics' Economist, Debopam Chaudhuri, said.

Investments in ULIPs in Tier II and III cities in the country suggest a growing level of financial literacy in the fast-developing Indian economy, the report said.

The report surveyed approximately 10,000 respondents in 15 Indian cities and towns.


By Nikhil , Senior Manager, Insurance  | 03 31 2010 11:47:54 +0000
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the financial literacy is growing but still rural and semi urban India is not so bold enough to invest in Ulip's. their primary motive is to buy insurance and have a life cover for their family..it will still take some good amount of years for Ulip's to penetrate the rural and semi urban markets quite well...it also depends on what product do the agents pitch to their clients..for a customer the agent is best adviser to give him a great product...Ulip's need to be educated and promoted by the agents more aggressively..
By Durgesh Nadkarni, Manager, IIPM (Indian Institute of Planning and Management)  | 04 05 2010 18:49:17 +0000
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